Savannah Petroleum has recently disclosed that it wouldc o n s i d e r oil and gas acquisitions in Nigeria with utmost priority, describing a purchase completed late last year as just warm up for further expansion. Savannah Petroleum recent purchase of Seven Energy International’s Nigerian gas assets, sub-Sahara Africa’s largest gas infrastructure and transportation network, in November, 2019 has being observed by energy industrial investors as step in right direction considering the potential gas business opportunities in oil rich region. Noting that Nigerian industrial customers, such as factories and power plants are being seen as most targeted as only about 50% of the capacity of its gas infrastructure purchase is being used and the company was already providing 10% of Nigeria’s power needs. Andrew Knott, Savannah’s chief executive, disclosed to Reuters that he would look at other assets that were no longer material for bigger players. He further preempted that Oil majors such as Chevron and ExxonMobil are contemplating to dispose certain Nigerian holdings as they focus on other projects. “ W e w i l l l o o k a t t h i n g s opportunistically and Seven Energy should be viewed as a starting kit” Knott said. Speaking on the sidelines of the Africa Investment Summit in London ,with British Prime Minister Boris Johnson in attendance among other African leaders as Britain seeks to strengthen trade ties beyond E u r o p e , A n d r e w K n o t t r e emphasized his company’s committed focus in expanding its presence in the Nigerian power sector. “We will look at things opportunistically and Seven Energy should be viewed as a starting kit” According to Knott Savannah’s is currently expanding the supply of gas to power stations and industrial
customers, at a prevailing cost of about $3.50 per thousand cubic feet which is seemingly cheaper than the roughly $15 for diesel, in addition to its cleaner nature as a greenhouse proponent in the environmental sector. “Both base businesses have very good organic growth opportunities,” Knott said, referring to Niger and Nigeria. Savannah also has oil assets in Niger, where it has control of roughly 50% of the oil-prolific Agadem Rift Basin. ADM Energy, Yinka Ogundare, CEO of EER, commented: “We are very pleased with this transaction that was structured to help further consolidate our working relationship with ADM. The transaction would result in deepening our collaborative relationship and help the partners and the operator develop the asset further.” Yinka Ogundare, CEO of EER, commented.There are currently five partners in the l i c e n c e : Y i n k a F o l a w i y o Petroleum Company Limited, New Age Exploration Nigeria Limited, Pan Petroleum Aje Limited, EER, and ADM. The Aje field started production in April 2016 from two wells in them Cenomanian reservoir, Aje-4 and Aje-5, with oil processed and exported from a leased FPSO, the Front Puffin.
